Individual Long-Term Care (LTC) Insurance
Long-Term Care (LTC) refers to the assistance provided to individuals either at home or in a care facility when they require help with daily activities like bathing and dressing. This need for assistance can arise due to various factors, such as accidents, illnesses, or the natural effects of aging. With increasing life expectancy, the potential need for long-term care grows as we age.
It is important to note that most long-term care expenses are not covered by Social Security, Medicare, Medicare Supplement plans (Medigap), or private health insurance. While Medicaid does cover a significant portion of nursing home care expenses, eligibility is determined based on federal poverty guidelines, and individuals may be required to deplete a significant portion of their assets to qualify for Medicaid assistance.
Considering the potential costs and the limited coverage provided by other sources, it is prudent to plan for long-term care needs in advance. Long-term care insurance can help mitigate the financial burden associated with long-term care services, providing coverage for home care, assisted living facilities, and nursing home care.